You are on page 1of 8

AMERICAN FARMLAND TRUST · FARMLAND INFORMATION CENTER

DESCRIPTION
This fact sheet provides a brief description of the assessment or property tax credits to farmers
tools and techniques that state and local govern- who enroll.
ments are using to protect farmland and support
Some states encourage local planning by limiting
the economic viability of agriculture. Some of the
district authorization to jurisdictions with
techniques result in programs that are enacted
comprehensive or farmland protection plans,
and administered at the state level, others are
requiring the adoption of land use regulations to
used primarily by local governments. Sometimes,
protect farmland, involving planning bodies in
FARMLAND municipal governments adapt and strengthen
state laws to meet unique local needs. Some of
the development and approval of districts, and

INFORMATION
limiting non-farm development in and around
the most effective farmland protection programs
agricultural districts.
combine regulatory and incentive-based strategies.
CENTER AGRICULTURAL DISTRICT PROGRAMS
AGRICULTURAL PROTECTION
ZONING (APZ)
Agricultural district programs allow farmers to
FACT form special areas where commercial agriculture
is encouraged and protected. Typically, programs
Agricultural protection zoning refers to county
and municipal zoning ordinances that support
and protect farming by stabilizing the agricul-
are authorized by state law and implemented at
SHEET the local level. Enrollment in agricultural districts
is voluntary. In exchange for enrollment, farmers
tural land base. They designate areas where
farming is the primary land use and discourage
other land uses in those areas. APZ limits the
receive a package of benefits, which varies from
activities that are permitted in agricultural
state to state.
zones. The most restrictive regulations prohibit
THE There are 19 agricultural district programs in any uses that might be incompatible with com-
16 states. California, New Jersey and North mercial farming.
Carolina offer farmers two levels of benefits.
APZ ordinances restrict the density of residen-
Minnesota and Virginia have statewide and local
FARMLAND agricultural district programs. Ohio has two
tial development in agricultural zones. Maximum
densities range from one house per 20 acres in
statewide programs.
the eastern United States to one house per
Agricultural district programs are intended to 640 acres in the West. Exclusive agricultural use
PROTECTION be comprehensive responses to the challenges APZ prohibits non-farm residential development.
facing farmers in developing communities. To Non-exclusive APZ ordinances use different
maintain the land base for agriculture, some approaches to limit density. Large minimum lot
TOOLBOX agricultural district programs protect farmland size APZ sets a minimum lot size for each resi-
from annexation and eminent domain. Many dence. For example, some ordinances require
also require that state agencies limit construction 40 acres per dwelling unit. Area-based
of infrastructure, such as roads and sewers, in allowance APZ uses a formula to achieve a
agricultural districts. A few offer participants desired density on the parent tract but allows or
eligibility for purchase of agricultural conserva- requires houses to be situated on small lots of 1
FARMLAND INFORMATION CENTER tion easement programs, and two states include or 2 acres. The ratio may be fixed or based on a
One Short Street, Suite 2 a right of first refusal in district agreements to sliding scale that requires more acreage per
Northampton, MA 01060 ensure that land will continue to be available dwelling for larger parcels.
Tel: (413) 586-4593 for agriculture.
Fax: (413) 586-9332 In addition to limits on residential development,
Web: www.farmlandinfo.org Agricultural district programs help create a more some APZ ordinances also contain limits on sub-
secure climate for agriculture by preventing local division, site design criteria and right-to-farm
NATIONAL OFFICE governments from passing laws that restrict farm provisions. They may also authorize commercial
1200 18th Street, NW, Suite 800 practices and by providing enhanced protection agricultural activities, such as farmstands, that
Washington, DC 20036 from private nuisance lawsuits. enhance farm profitability. Occasionally, farmers
Tel: (202) 331-7300 in an agricultural zone are required to prepare
To reduce farm operating expenses, some pro-
Fax: (202) 659-8339 farm management plans.
grams offer automatic eligibility for differential
Web: www.farmland.org

The FARMLAND INFORMATION CENTER (FIC) is a clearinghouse for information about farmland protection and stewardship.
© February 2008 The FIC is a public/private partnership between the USDA Natural Resources Conservation Service and American Farmland Trust.
A m e r i c a n f a r m l a n d t r u s t · F a r m l a n d i n f o r m a t i o n c e n t e r

In most states, APZ is implemented at the county ranchers because of the noise, dust and odors
level, although towns and townships may also associated with commercial agricultural produc-
have APZ ordinances. Zoning can be modified tion. Even if the owners are willing to let the
through the local political process. Generally, the land be used for agriculture, undeveloped por-
enactment of an APZ ordinance results in a tions of cluster subdivisions may not be large
reduction of permitted residential densities in the enough for farmers to operate efficiently, and
new zone. This reduction in density, also called access can also be a problem. For these reasons,
downzoning, may be controversial because it can cluster zoning has been used more successfully
THE reduce the market value of land. A change in to preserve open space or to create transitional
zoning that increases permitted residential areas between farms and residential areas than
densities is known as upzoning. A change in the to protect farmland.
zoning designation of an area—from agricultural
FARMLAND to commercial, for example—is known as re- COMPREHENSIVE PLANNING
zoning. Successful petitions for upzoning and
Comprehensive planning allows counties, cities,
rezoning in agricultural protection zones often
towns and townships to create a vision for their
PROTECTION result in farmland conversion.
joint future. Comprehensive plans, which are also
APZ stabilizes the agricultural land base by known as master or general plans, outline local
keeping large tracts of land relatively free of government policies, objectives and decision
TOOLBOX non-farm development. This can reduce the like- guidelines, and serve as blueprints for develop-
lihood of conflicts between farmers and their ment. They typically identify areas targeted for a
non-farming neighbors. Communities can use variety of different land uses, including agricul-
APZ to conserve a “critical mass” of agricul- ture, forestry, residential, commercial, industrial
tural land, enough to keep individual farms and recreational activities. Comprehensive plans
from becoming isolated islands in a sea of resi- provide a rationale for zoning and promote the
dential neighborhoods. Maintaining a critical orderly development of public services.
mass of agricultural land can ensure that there
A comprehensive plan can form the foundation
will be enough farms to support local agricul-
of a local farmland protection strategy by identi-
tural service businesses. By restricting the devel-
fying areas to be protected for agricultural use
opment potential of large properties, APZ limits
and areas where growth will be encouraged. It
land speculation and helps keep land affordable
may include policies designed to conserve natural
to farmers and ranchers. Finally, APZ helps pro-
resources and provide affordable housing and
mote orderly growth by preventing sprawl into
adequate public services. Some counties have
rural areas, and benefits farmers and non-farmers
used the comprehensive planning process to
alike by protecting scenic landscapes and main-
encourage their cities and towns to develop desig-
taining open space.
nated urban growth areas or boundaries (UGBs)
and adopt APZ. Others have incorporated the
CLUSTER ZONING use of purchase of agricultural conservation ease-
Cluster zoning ordinances allow or require ments (PACE) and transfer of development rights
houses to be grouped together on small lots to (TDR) into their master plans.
protect open land. The portion of the parcel that
is not developed may be restricted by a conser- CONSERVATION EASEMENTS
vation easement. Cluster developments are also Conservation easements are deed restrictions
known as cluster subdivisions, open space or that landowners voluntarily place on their land
open land subdivisions. to protect important resources. They are used
Cluster subdivisions can keep land available for by landowners (“grantors”) to authorize a qual-
agricultural use, but generally they are not ified conservation organization or public agency
designed to support commercial agriculture. The (“grantee”) to monitor and enforce the restric-
protected land is typically owned by developers tions set forth in the agreement.
or homeowners’ associations. Homeowners may Forty-nine states have a law pertaining to con-
object to renting their property to farmers and servation easements. The National Conference

2
AMERICAN FARMLAND TRUST · FARMLAND INFORMATION CENTER

of Commissioners on Uniform State Laws purposes. They may be advisory or carry the full
adopted the Uniform Conservation Easement Act force and effect of law, depending on the state.
in 1981. The Act was designed to serve as a Governors from at least nine states have issued
model for state legislation to allow qualified executive orders directing state agencies to avoid
public agencies and private conservation organi- contributing to the conversion of agricultural
zations to accept, acquire and hold less-than-fee- land. These state-level policies mirror the federal
simple interests in land for the purposes of Farmland Protection Policy Act (FPPA), which
conservation and preservation. Since the Uniform was enacted as a subtitle of the 1981 Farm Bill
Act was approved, 23 states have adopted con-
servation easement-enabling legislation based
to “…minimize the extent to which Federal THE
programs contribute to the unnecessary conver-
on this model and 26 states have drafted and sion of farmland to non-agricultural uses….”
enacted their own conservation easement- Some orders identify a lead agency, typically
enabling laws. the state department of agriculture, to review FARMLAND
Agricultural conservation easements are designed state agency activities that may result in farm-
to keep land available for agriculture. Grantors land conversion. These policies may help head
retain the right to use their land for farming, off condemnation and/or may be used to justify PROTECTION
ranching and other purposes that do not interfere mitigation.
with or reduce agricultural viability. They hold Massachusetts Executive Order 193, for
title to their properties and may restrict public example, issued in 1991, has been used by the TOOLBOX
access, sell, give or transfer their property, as Department of Agricultural Resources (DAR)
they desire. Producers also remain eligible for to negotiate mitigation for farmland loss. The
any state or federal farm program for which DAR seeks mitigation for projects involving
they qualified before entering into the conserva- state funds and privately funded development
tion agreement. projects subject to the state’s environmental
Easements may apply to entire parcels of land or permitting process. Mitigation options include
to specific parts of a property. Most easements permanently protecting equivalent agricultural
are permanent; term easements impose restric- land by granting an agricultural preservation
tions for a limited number of years. All conser- restriction to the Commonwealth or by making
vation easements legally bind future landowners. a financial contribution to its farmland protec-
Land protected by conservation easements re- tion program, a municipality or a qualified con-
mains on the tax rolls and is privately owned servation organization.
and managed. While conservation easements Other executive orders have created task forces to
limit development, they do not affect other investigate farmland conversion and recommend
private property rights. possible solutions. For example, Ohio’s executive
Agricultural conservation easements are a flexible order created a state-level farmland preservation
farmland protection tool. Private land trusts and task force and ultimately led to the creation of the
other conservation organizations educate farmers state’s easement acquisition program.
about the tax benefits of donating easements, State executive orders have the potential to build
and state and local governments have developed public and institutional support for other farm-
programs to purchase agricultural conservation land protection programs. By restricting the use
easements from landowners. In addition, agricul- of state funds for projects that would result in
tural conservation easements can be designed to the loss of agricultural land, executive orders
protect other natural resources, such as wetlands also can influence the actions of local govern-
and wildlife habitat. ments. To the extent that they call attention to
the problem of farmland conversion and facilitate
EXECUTIVE ORDERS discussion about solutions, orders can serve as a
State executive orders are policy statements building block of a comprehensive farmland pro-
issued by governors to accomplish specific tection program.

3
A m e r i c a n f a r m l a n d t r u s t · F a r m l a n d i n f o r m a t i o n c e n t e r

FARM VIABILITY PROGRAMS require that public services such as water and
sewer lines, roads and schools be in place before
Farm viability programs provide technical assis-
new development is approved. Others direct
tance and, in some cases, small grants to
local governments to make decisions in accor-
improve the profitability of farm operations.
dance with comprehensive plans that are consis-
These programs are administered by departments
tent with plans for adjoining areas.
of agriculture, extension and/or nonprofit orga-
nizations. Typically, teams of experts work with Oregon has one of the nation’s strongest growth
operators to evaluate the current operation and management laws. As a result of the state’s 1972
THE develop individualized plans. Funds may also be Land Conservation and Development Act, every
available to implement practices or undertake county in Oregon has implemented agricultural
capital projects identified in the planning protection zoning, protecting more than 16 mil-
FARMLAND process. Some of the programs include farmland lion acres of agricultural land. Washington’s
protection and resource conservation compo- Growth Management Act (GMA), passed in
nents. The Massachusetts Farm Viability 1990 and strengthened in 1991, also is proving
Enhancement program, for example, awards to be an effective farmland protection tool. Since
PROTECTION implementation grants in exchange for term the enactment of the GMA, most of Washington’s
easements. All viability programs assume that counties have developed inventories of important
changes at the farm level—be it better manage- agricultural land, and several have adopted agri-
TOOLBOX ment of existing resources or a new direction in cultural protection zoning and/or created pur-
marketing and/or products offered—can lead to chase of agricultural conservation easement and
enhanced farm profitability. transfer of development rights programs.
Growth management laws in Hawaii, Vermont,
The first two agricultural viability programs
New Jersey and Maryland have been somewhat
were developed in Massachusetts and Minnesota
less effective in preventing farmland conversion
in the mid 1990s. Subsequent programs have
and promoting the development of local farm-
been adopted by Connecticut, Maine, New
land protection programs.
Jersey, New York and Vermont. In the 2002
Farm Bill, a federal Farm Viability Program was
MITIGATION lawS AND POLICIES
created, authorizing the Secretary of Agriculture
to provide grants to eligible entities with Farmland mitigation laws and policies attempt to
approved farm viability programs. The federal compensate for the conversion of agricultural
program has not yet been implemented. land to another use by requiring permanent
protection of “comparable” agricultural land. In
GROWTH MANAGEMENT LAWS 1995, city officials in Davis, Calif., enacted an
ordinance that requires developers to perma-
Growth management laws are designed to con-
nently protect one acre of farmland for every
trol the timing and phasing of urban growth
acre of agricultural land they convert to other
and to determine the types of land use that will
uses. Developers can place an agricultural conser-
be permitted at the local and regional levels. At
vation easement on farmland in another part of
least 12 states have laws that control develop-
the city or pay a fee in lieu of direct protection.
ment or set planning standards for local govern-
ments. Of these, several address the issue of King County, Wash., has a “no net loss of farm-
farmland conversion. land” policy in its comprehensive plan. The
policy prohibits the conversion of land subject to
Growth management laws take a comprehensive
APZ unless an equal amount of agricultural land
approach to regulating the pattern and rate of
of the same or better quality is added to the
development and set policies to ensure that most
county’s agricultural production zones.
new construction is concentrated within UGBs.
They direct local governments to identify lands In 2004, Connecticut lawmakers adopted Public
with high resource value and protect them from Act No. 04-222, which requires municipalities,
development. Some growth management laws towns, cities, boroughs and districts to mitigate

4
A m e r i c a n f a r m l a n d t r u s t · F a r m l a n d i n f o r m a t i o n c e n t e r

the loss of active agricultural land taken by programs. Cooperative programs allow states to
eminent domain. Local governments may either set broad policies and criteria for protecting
purchase an agricultural conservation easement agricultural land, while county or township gov-
on comparable land within its jurisdiction OR ernments select the farms that they believe are
pay a mitigation fee to the state’s farmland pro- most critical to the viability of local agricultural
tection program to protect similar land elsewhere economies and monitor the land once the ease-
in the state subject to the approval of the state’s ments are in place. Involving two levels of
farmland preservation program and the government generally increases the funding
Commissioner of Agriculture. available for PACE. Finally, cooperative pro- THE
grams increase local government investment in
PURCHASE OF AGRICULTURAL farmland protection.
CONSERVATION EASEMENT
PROGRAMS (PACE) PACE programs allow farmers to cash in a fair FARMLAND
percentage of the equity in their land, thus cre-
Purchase of agricultural conservation easement ating a financially competitive alternative to
programs pay farmers to protect their land from selling land for non-agricultural uses. Permanent
development. PACE is known by a variety of easements prevent development that would
PROTECTION
other terms, the most common being purchase effectively foreclose the possibility of farming.
of development rights (PDR). Removing the development potential from farm-
Landowners voluntarily sell agricultural conser- land generally reduces its future market value. TOOLBOX
vation easements to a government agency or This may help facilitate farm transfer to the
private conservation organization. The agency or children of farmers and make the land more
organization usually pays them the difference affordable to beginning farmers and others who
between the value of the land for agriculture and want to buy it for agricultural purposes. PACE
the value of the land for its “highest and best provides landowners with liquid capital that can
use,” which is generally residential or commer- enhance the economic viability of individual
cial development. farming operations and help perpetuate family
tenure on the land. Finally, PACE gives commu-
Easement value is most often determined by pro-
nities a way to share the costs of protecting
fessional appraisals, but may also be established
agricultural land with farmers.
through the use of a numerical scoring system
that evaluates the suitability for agriculture of a
RIGHT-TO-FARM LAWS
piece of property. Twenty-seven states have
authorized state-level PACE programs and inde- Every state in the nation has at least one right-
pendent local programs operate in 18 states. to-farm law. State right-to-farm laws are
State and local governments can play a variety of intended to protect farmers and ranchers from
roles in the creation and implementation of PACE nuisance lawsuits. Some statutes protect farms
programs. Some states have passed legislation and ranches from lawsuits filed by neighbors
that allows local governments to create PACE who moved in after the agricultural operation
programs. Others have enacted PACE programs was established. Others protect farmers who use
that are implemented, funded and administered generally accepted agricultural and management
by state agencies. Several states work coopera- practices and comply with federal and state
tively with local governments to purchase ease- laws. Many right-to-farm laws also prohibit
ments. A few states have appropriated money local governments from enacting ordinances
for use by local governments and private non- that would impose unreasonable restrictions on
profit organizations. Finally, some local govern- agriculture.
ments have created independent PACE programs State right-to-farm laws are a state policy asser-
in the absence of any state action. tion that commercial agriculture is an important
Cooperative state–local PACE programs have activity. The statutes also help support the eco-
some advantages over independent state or local nomic viability of farming by discouraging

5
A m e r i c a n f a r m l a n d t r u s t · F a r m l a n d i n f o r m a t i o n c e n t e r

neighbors from filing lawsuits against agricul- breaker programs are based on farmer income
tural operations. Beyond these protections, it is and are funded by state governments.
unclear whether right-to-farm laws help main-
Differential Assessment
tain the land base.
Differential assessment laws direct local govern-
At the same time, local governments around the ments to assess agricultural land at its value for
nation are enacting their own right-to-farm laws agriculture, instead of its full fair market value,
to strengthen and clarify language in state laws. which is generally higher. Differential assessment
Local activity has been encouraged by model laws are enacted by states and implemented at
THE local ordinances developed by state agriculture the local level. With a few exceptions, the cost is
agencies (e.g., New Jersey’s State Agriculture borne at the local level.
Development Committee) and/or farm advocacy
FARMLAND groups (e.g., California Farm Bureau). Differential assessment programs help ensure the
economic viability of agriculture. Since high
Local right-to-farm ordinances can serve as a taxes reduce profits, and lack of profitability is a
formal policy statement that agriculture is a major motivation for farmers to sell land for
PROTECTION valuable part of the county or town economy development, differential assessment laws also
and culture. Some require that a notice be protect the land base. Finally, these laws help
placed on the deed to all properties in agricul- correct inequities in the property tax system.
tural areas, cautioning potential buyers that
TOOLBOX they may experience noise, dust, odors and
Owners of farmland demand fewer local public
services than residential landowners, but they pay
other inconveniences due to farming and ranch- a disproportionately high share of local property
ing operations. At a minimum, local ordinances taxes. Differential assessment helps bring farm-
help educate residents about the needs of com- ers’ property taxes in line with what it actually
mercial agriculture and reassure farmers that costs local governments to provide services to
their communities support them. the land.

TAX RELIEF Every state except Michigan has a differential


assessment law. Differential assessment is also
Circuit Breaker Tax Relief Credits known as current use assessment, current use
Circuit breaker tax programs offer tax credits to valuation, farm use valuation, use assessment
offset farmers’ property tax bills. Four states and use value assessment.
have circuit breaker programs. In Michigan,
Wisconsin and New York, farmers may receive TRANSFER OF DEVELOPMENT
state income tax credits based on the amount of RIGHTS (TDR)
their real property tax bill and their income. In
Transfer of development rights programs allow
Iowa, farmers receive school tax credits from
landowners to transfer the right to develop one
their local governments when school taxes
parcel of land to a different parcel of land.
exceed a statutory limit. The counties and
Generally established through local zoning ordi-
municipalities are then reimbursed from a state
nances, TDR programs can protect farmland
fund. In Michigan, landowners who wish to
by shifting development from agricultural areas
receive circuit breaker credits must sign 10-year
to areas planned for growth. When the develop-
restrictive agreements with their local govern-
ment rights are transferred from a piece of
ments to prevent farmland conversion. In
property, the land is typically restricted with a
Wisconsin, counties and towns must adopt plans
permanent agricultural conservation easement.
and enact agricultural protection zoning to
Buying development rights generally allows
ensure that tax credits are targeted to productive
landowners to build at a higher density than
agricultural land.
ordinarily permitted by the base zoning in desig-
Like differential assessment laws, circuit breaker nated receiving areas. TDR is known as transfer
tax relief credits reduce the amount farmers are of development credits in California and in some
required to pay in taxes. The key differences parts of New Jersey.
between the programs are that most circuit

6
A m e r i c a n f a r m l a n d t r u s t · F a r m l a n d i n f o r m a t i o n c e n t e r

TDR is used by counties, cities, towns and TDR programs are designed to accomplish
townships. Two regional TDR programs were the same purposes as publicly funded PACE
developed to protect the pine barrens of Long programs. They prevent non-agricultural devel-
Island, N.Y., and New Jersey’s Pinelands. TDR opment of farmland, reduce the market value of
programs are distinct from PACE programs protected farms and provide farmland owners
because they involve the private market. Many with liquid capital that can be used to enhance
TDR transactions are between private landowners farm viability.
and developers. Local governments approve
TDR programs also offer a potential solution to
transactions and monitor easements. A few
the political and legal problems that many com-
THE
jurisdictions have created “TDR banks” that
munities face when they try to restrict develop-
buy development rights with public funds and
ment of farmland. Landowners often oppose
sell them to developers and other private
landowners.
agricultural protection zoning and other land use FARMLAND
regulations because they can reduce equity. APZ
Some states have enacted special legislation can benefit farmers by preventing urbanization,
authorizing local governments to create TDR but it may also reduce the fair market value of
programs. In 2004 the New Jersey Legislature their land. When more restrictive land use regu-
PROTECTION
enacted the State Transfer of Development lations are enacted in conjunction with a TDR
Rights Act. The State TDR Act enables muni- program, communities can maintain equity for
cipalities to develop and participate in intra- landowners. For example, development rights TOOLBOX
municipal and inter-municipal programs. This for transfer may be allocated based on the
law also formalized the planning process re- “underlying” or prior zoning.
quired to enact TDR and mandated a list of For additional information on
While dozens of local jurisdictions around the
planning documents required prior to adopting a farmland protection and stewardship,
country allow the use of TDR, only a few of
TDR ordinance. The Act also authorized the contact the Farmland Information
them have used the technique successfully to
State TDR Bank Board to provide planning
protect farmland. TDR programs are complex Center. The FIC offers a staffed
grants to communities developing programs.
and must be carefully designed to achieve their answer service, online library,
Other states have consistently refused to give goal. Communities that have been most success- program monitoring, fact sheets
local governments such authorization. Counties ful in using TDR are characterized by steady and other educational materials.
and towns have created TDR programs without growth, with the political will to maintain and
specific state authorizing legislation; municipal implement strong zoning ordinances and plan-
governments must work with their attorneys to www.farmlandinfo.org
ning departments that have the time, knowledge
determine whether other provisions of state law and resources to administer complex land use
(800) 370-4879
allow them to use TDR. regulations.

American Farmland Trust works to stop the loss of productive farmland


and to promote farming practices that lead to a healthy environment. 7
AMERICAN FARMLAND TRUST · FARMLAND INFORMATION CENTER

FARMLAND PROTECTION ACTIVITY BY STATE

Agricultural Conservation Circuit Differential PACE Right-to-Farm* TDR


State Districts Easements Breaker Assessment

Alabama   
Alaska   
Arizona    
Arkansas   
California      
Colorado     
Connecticut     
Delaware      
Florida     
Georgia     
Hawaii    
Idaho    
Illinois     
Indiana   
Iowa     
Kansas   
Kentucky      
Louisiana   
Maine     
Maryland      
Massachusetts       
Michigan   
Minnesota      
Mississippi   
Missouri   
Montana     
Nebraska   
Nevada    
New Hampshire     
New Jersey      
New Mexico    
New York       
North Carolina     
North Dakota  
Ohio     
Oklahoma   
Oregon    
Pennsylvania      
Rhode Island    
South Carolina    
South Dakota   
Tennessee    
Texas   
Utah      
Vermont     
Virginia      
Washington     
West Virginia    
Wisconsin      
Wyoming   

TOTAL 16 49 4 49 32 50 24
 State level
 Local level
* A number of local jurisdictions also have enacted right-to-farm ordinances. We do not have a complete inventory.

You might also like